Nucor Stock Drops as Lower Selling Prices Weigh on Steelmaker’s Results and Outlook [Video]

Shares in Nucor (NUE) slumped more than 6% ahead of the opening bell Tuesday after the steel producer missed Wall Street’s quarterly estimates and issued a weaker-than-expected current-quarter outlook amid lower selling prices.

The Charlotte, North Carolina-based steelmaker posted first-quarter earnings of $3.46 per share, below analysts’ forecast of $3.64 a share. Revenue in the period of $8.14 billion contracted 7% from the prior year’s corresponding quarter and came in short of the $8.26 billion consensus view, in part, due to the company’s steel products unit reporting a 15% year-over-year (YOY) fall in shipments coupled with lower average selling prices.

Looking ahead, the company sees the bottom line declining on a sequential basis in the current quarter due to ongoing lower average selling prices weighing on its steel mills segment.

“We expect earnings in the second quarter of 2024 to decrease compared to the first quarter of 2024. The largest driver for the expected decrease in earnings in the second …